M/S Harsh Polyfabric Private Limited vs. Union Of INDIA And Ors.

Facts

The appellant, M/s. Harsh Polyfabric Private Limited, filed an intra-court appeal against an order dated January 13, 2023, passed by a learned Single Bench of the Calcutta High Court. The writ petition, filed in 2021, challenged an order dated March 10, 2021, passed by the appellate authority under the West Bengal Goods and Service Tax Act. The core dispute concerned the classification of the appellant's product. The learned Single Bench dismissed the writ petition, holding that a writ court cannot scrutinize product composition and manufacturing modes, as this requires expert scientific and technical analysis for classification under the Customs Tariff Act. The Single Bench granted liberty to the appellant to raise these issues before an appellate forum or tribunal when available.

Held

The Court held that while the general principle is that writ courts do not adjudicate disputed questions of fact, a departure is necessary in this case. The absence of a constituted GST Tribunal in West Bengal meant the appellant had no effective alternative remedy against the appellate authority's order dated March 10, 2021. Therefore, the writ petition was maintainable. The Court found that since the writ petition was filed in 2021 and pleadings were complete, it should have been decided on merits. The learned Single Bench's dismissal of the writ petition solely on the ground of maintainability, without deciding the merits, was set aside. The appeal was allowed, and the writ petition was restored to the file of the learned Writ Court with a direction to decide the matter on merits. The appellant was granted liberty to pray for early listing of the writ petition.

Key Issues

1. Whether the learned Single Bench was justified in dismissing the writ petition on the ground that the classification dispute requires scientific and technical analysis and cannot be adjudicated in writ jurisdiction, thereby holding that the appellant should pursue remedies before an appellate forum or tribunal? Petitioner's arguments: The appellant contended that given the absence of a constituted GST Tribunal in West Bengal, the writ petition was maintainable as there was no effective alternative remedy. They argued that the writ petition, filed in 2021 with complete pleadings, should have been decided on merits by the learned Single Bench. Revenue/State's arguments: The respondent State argued that under normal circumstances, disputed questions of fact are not adjudicated in writ proceedings, and the aggrieved person should avail statutory remedies. However, they did not explicitly contest the maintainability of the writ petition in the absence of the Tribunal.